Indonesia Rice Crisis

{draw: compose} Instead of the lead for strain in Indonesia, the total supplied for sift crop in Indonesia is relatively luxuriously. Therefore, Indonesia exhaustively deal be capable of to one of the major countries with the determination to trade sift harvest to the opposite country. Usually the maker follows the rectitude of supply. According to Mankiw, law of supply refers to the claim that, other things equal, the quantity supplied of a estimable rises when the p sift of good rises. Or in another word, the upraiser will produce a dowery when the toll is above the normal. {draw:frame} In summary, rice is the present momentant one of food product that Indonesia citizen need. For that reason, the necessitate for rice in the Indonesia market place is relatively high. Since the demand for rice is high, the Indonesia establishment make a dominion in tell to foil the producer implemented a high harm for rice product. The government has put a charge ceiling for rice product which means the maximum price of rice to make do in the market. As a result, the rice producer cannot scarcely give a sell price impulsively. In Indonesia, in that location is hard to looking for for alternate’s product for rice since the taste of Indonesia citizen select to use for daily basic need. For that reason, the price elasticity of demand for rice product in Indonesia is inelastic.

However, because the monetary crisis attacked in 1998 along with in al close al arena in economy, politic, and social almost collapsed. The price of rice product was change magnitude dramati cally that is no longer affordable for most ! Indonesia citizen and caused change magnitude number of poverty and hunger. The government came with solution to outstrip this mater, with BULOG the National Logistic Agency cut the import tariff for import rice product for another country. However, this regulation made the price of rice in Indonesia unbalance in the market and the domestic farmers suffered with this condition. In 2004, Indonesia government not merchandise rice product from other...If you want to get a just essay, order it on our website: OrderCustomPaper.com

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